Carillion Plc Regulatory News (CLLN)

24 April 2012

Carillion awarded 10-year contract by Oxfordshire County Council for property and facilities management services worth up to £700 million

Oxfordshire County Council has awarded a 10-year contract to Carillion for the provision of property and facilities management services worth up to £500 million to Carillion. The Council will achieve revenue savings of at least £550,000 per annum. This is the first time that the Council has grouped all of its property services into one contract and this is the first Local Authority contract of this kind in the UK.

A framework agreement has also been put in place through which other local councils and bodies within Oxfordshire can procure services that could increase Carillion's revenue by an additional £200 million over the 10-year contract period.

Oxfordshire County Council also has the option to extend the contract for a further 10 years, based on performance.

Carillion will provide routine property management, facilities management, energy management and capital works services. Carillion has appointed Capita Symonds as a key sub-consultant to deliver strategic asset management, estates management and multi-disciplinary design services, which are expected to generate approximately £42 million of revenue for Capita over the 10-year life of the contract, with the potential for additional revenue from the framework agreement.

Oxfordshire County Council, Carillion and Capita Symonds share a common ambition to grow a successful partnership founded on creating success for local suppliers and producers. While contracted savings form the foundation of the solution, there is a strong commitment to improve quality to all service users by transforming the structure of service delivery and developing the skills of the people on the frontline of service delivery. The partnership will build resilience within Council services to protect against future risks and provide the flexibility to take forward new opportunities as they arise.

Carillion will also take on the Council's schools catering business (Food with Thought) and in-house cleaning service (QUEST Cleaning Services) as part of the new contract, with the transfer of over 700 staff. Both services are a key focus of Carillion's growth plans going forward.

The contract will have the flexibility to serve other local councils and bodies within Oxfordshire through a Framework Agreement. Participating bodies can procure similar services for their own estates, without the need for further procurement processes or costs. Participating bodies include health and other public sector organisations, the district councils, schools (including academies) and further education colleges across Oxfordshire.

Commenting, Carillion Chief Executive Richard Howson said, "We are delighted to be chosen for this exciting partnership with Oxfordshire County Council. This builds upon Carillion's strong track record in delivering integrated service solutions to Local and Central Government customers. We will continue to work closely with Oxfordshire County Council to ensure we deliver high quality, value for money services to the people of the County".

Huw Jones, Director for Environment & Economy said: "The Council has taken advantage of the opportunity to combine a number of contracts that had previously operated independently of each other to provide comprehensive high quality services that also operate more cost effectively, not only improving consistency and resilience, but making financial common sense."

For more information

John Denning, Director Group Corporate Affairs, Carillion plc + 44 (0) 1902 316426

Finsbury

James Murgatroyd or Gordon Simpson +44 (0) 207 2513801

Notes to Editors

Carillion is a leading support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. The Group had annual revenue in 2011 of £5.1 billion, employs around 45,000 people and operates across the UK, in the Middle East and Canada. The Group has four business segments.

Support services - this includes facilities management, facilities services, energy services, utility services, road maintenance, rail services and consultancy services.

Public Private Partnership (PPP) projects - this includes our investing activities in PPP projects in our chosen sectors of Defence, Health, Education, Transport, Secure and other Government accommodation.

Middle East construction services - this includes our building and civil engineering activities in the Middle East.

Construction services (excluding the Middle East) - this includes building, civil engineering and our development activities in the UK and our construction activities in Canada.

This and other Carillion news releases can be found at www.carillionplc.com